Halal Stock

Is Infosys a Halal Stock? Shariah Screening Explained

Quick Answer: Is Infosys Halal?

Yes, Infosys Ltd (NSE: INFY) is currently considered a halal stock. The company operates in the Information Technology sector, which is a halal industry under Islamic law. Based on the latest FY 2024–25 financial reports, Infosys meets the major Shariah screening ratios related to debt, interest income, and non-permissible income.

Muslim investors seeking ethical exposure to the stock market today can confidently consider Infosys as part of a Shariah-compliant investment strategy—subject to quarterly re-screening.

About Infosys Ltd (NSE: INFY)

Infosys is one of India’s largest multinational IT companies, providing digital consulting, cloud services, artificial intelligence, and enterprise software solutions. It is a widely held public company listed on both NSE and BSE and a component of the Nifty 50 index.

Market Snapshot (As of Q1 FY 2024–25)

Source: Infosys Financial Reports (Q4 FY24), NSE India, Zerodha

What Makes a Stock Halal? Shariah Screening Methodology

The process to determine if a stock is halal follows Islamic guidelines defined by AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) and applied by platforms like Zoya, TASIS, and Islamically.

1. Business Activity Screening

  • Infosys operates in IT consulting and digital services, which is halal.

2. Financial Ratio Screening

AAOIFI-compliant halal stock screening includes:

Thus, Infosys currently meets all four Shariah criteria and is classified as a halal stock.

Why Infosys Is Still a Halal Stock in 2025

Infosys continues to maintain conservative debt levels, generates the majority of its income from halal sources (IT consulting and SaaS), and discloses treasury operations in detail. Its fixed deposits and interest income are not significant enough to disqualify it under AAOIFI or Indian Shariah standards (e.g., TASIS).

It is included in the Shariah-compliant lists published by:

How to Invest in Infosys as a Halal Stock

Muslim investors can invest in Infosys through any SEBI-registered broker. Here are a few halal-conscious tips:

Use These Platforms

  • Zerodha: Great for long-term halal stock screening and fundamental data
  • Angel One: Offers real-time charting and screening tools

Monitor Halal Status Quarterly

Shariah compliance must be checked regularly, especially after quarterly earnings. A stock may pass today and fail tomorrow based on updated ratios.

Purification

If you receive dividends from a halal stock with minor non-compliant income (under 5%), scholars recommend purifying the income by donating the non-halal portion to charity.

FAQ: Infosys Halal Stock Analysis

Q1: Is Infosys halal for Muslim investors?

Yes. Based on business activity and financial ratios, Infosys qualifies as a halal stock under AAOIFI and Indian Shariah standards.

Q2: Does Infosys earn interest?

Yes, it earns about 3.2% from treasury operations and bank deposits. This is within the permissible 5% limit.

Q3: How often should I check if Infosys is still halal?

Every quarter, after financial results are released. Use tools like Zoya or Islamically.

Q4: Should I purify my dividend from Infosys?

Yes. If any part of income comes from non-compliant sources (under 5%), purify that portion by donating it.

Conclusion: Infosys Remains a Strong Halal Stock in 2025

Infosys Ltd continues to be a reliable halal stock for Muslim investors in India. It passes the AAOIFI financial filters, engages in a permissible business model, and is transparent with its financial disclosures. For halal-conscious investors, Infosys provides ethical exposure to India’s rapidly growing IT services sector.

However, investors must stay updated on quarterly results and re-screen the stock regularly to ensure continued Shariah compliance.

Disclaimer